I *love* PG regions.
Low lag as there are no clubs or large events, most of the builds are prefab homes so not as much unsightly nonsense.

The word that jumps out at me in the PG description (definition) is "located" ( as in "may not be located or sold in PG regions" - which brings-up the old descriptions Robin Linden threw out back in 2006/07 where the 'definition' was referring to PUBLIC areas and that private areas (i.e. your home) was more or less esxcempt as long as you made good-faith effort to follow the rules.

I don't know.

I sell thrones. Pretty tame as far as a lot of SL furniture goes.
Easy enough for me to remove the one menu that leads to the "naughty" animations and leave the rest.

But this does leave more questions than it answers. I suspect Linden Lab also refers to "open spaces visible to the public at large" with regard to this.

So I pontificated on the subject myself LOL
http://commonsensible.net/2009/06/02/second-life-pg-regions-pointless-gloom/